The euro fell to an 18-month low Friday amid growing concerns about Europe's finances. Less than a week after the EU and IMF announced a whopping $1 trillion bailout package for Europe's so-called PIIGS, a growing number of high-profile voices, including Paul Volcker and Jimmy Rogers, are raising doubts about the euro's future.
A natural question: Is U.S. the next Greece -- as former guest Peter Schiff has stated, and economist James Galbraith has disputed?
"I would say the parallel is more with the euro area as a whole than with Greece," says our guest Raghuram Rajan, professor of finance at the University of Chicago, and former chief economist at the International Monetary Fund.
European nations, Greece especially, went on a spending binge. "You basically gave a drunkard a credit card. He went out and spent like mad," Rajan says.
Some pundits say America is on the same financial trajectory. "What the U.S. has as the same lines as Greece is this, or the euro area I should say, is the constant bailing out of anything that goes wrong," says Rajan, author of a new book, "Fault Lines: How Hidden Fractures Still Threaten the World Economy."
But bailouts aren't the answer. Furthermore, "we've used all our bullets. We don't have any bullets left," Rajan recently told The New Yorker.
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Royal Bank of Scotland Has Said it is to Cut a Further 2,600 UK Jobs Over the Next Year.
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Royal Bank of Scotland Has Said it is to Cut a Further 2,600 UK Jobs Over the Next Year.
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"But bailouts aren't the answer. Furthermore, "we've used all our bullets. We don't have any bullets left," Rajan recently told The New Yorker."
ReplyDeleteI beg to differ. A few well-aimed bullets would work wonders to help alleviate our current economic problems
Yes along with Gold and Silver
ReplyDeletethe other precious metal LEAD
has been selling very well.
"I beg to differ. A few well-aimed bullets would work wonders to help alleviate our current economic problems"
ReplyDeleteLOL!
Who the fuck is James Galbraith? He has no record of making the right calls? James Galbraith is trying to making a name for himself by arguing with Peter Schiff because he know Peter is right.
ReplyDeleteThe bailouts in the USA has amounted to $13 trillion. The EU has a $1 trillion bailout. Greece represents 3% of the entire EU zone. Problems in EU and Greece pale in comparison to problems in USA. Media propaganda again is diverting the problem to Europe, blaming stock market retreat to Europe, blah blah.
ReplyDeleteHumanity has reached an orgasm.
ReplyDeleteThis is the weirdest time I've ever known. It's like all the different concepts, beliefs, religions, thinkers, histories, cultures, people (past and present), factions, groups, and so forth are all unfolding in the external field and meeting with each other and it seems their interaction is energetically getting more rapid and intense. I feel it is hard to keep sane and I feel suffocated at times.
I went to Basspro today and saw two senior women buying candles, gas lantern and other items. They did not seem excited about the camping trip they were going on, they seemed very stressed and deliberate. One of the ladies was helping the other lady get what she needed. I think they were preparing for when the SHTF. They seemed very stressed.
ReplyDeleteI am currently reading "Alas, Babylon" by Pat Frank. It wakes you up to how naive people can be. It also caused me to go to the store and buy a few things I had not thought of. When the Euro tanks we will follow suite. It seems that the US lies to the sheep and they continue to spend. So, I expect when the euro tanks they will pump printed cash into all other economies. Our dollar will got less than a dime. I believe this will happen before Christmas. I have doubled my effort in dehydrating food. Vacuum packing flour and other dry goods. My garden is well on it's way. I am going to can 40 pints of chicken next week.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteIt is not just the Euro € that has run out of bullets.
ReplyDeleteSo has the entire US Dollar Hegemony system of international trade and finance run by the Fed.
As well as taking on the Dud bonds in the US to put in its books in one US bailout ,the US and the US dominated IMF has now guaranteed the entire Euro bond markets in a second huge bailout to rescue the economic system.
The Fed has now not only propped up the U.S .but the European Bond and derivatives markets too.
The currency swaps mean that these bonds being supported in Europe go on the Feds books now too. Alongside all its Dud US housing mortgages and other Bonds as assets.
PAY ATTENTION!
The card the Euro elite is playing is no longer the € Euro card , but the swapped U.S.$ card for shock and Awe.
It’s a new deal and Uncle Ben is the dealer handing out the cards for the Fed.
Americans have no democratic say in what the privately owned Fed does with the money it prints.
Did you or even the poodle congress get to vote on this at least a trillion dollar bailout for Europe by the d “swapping “‘your” countries dollars for propping up EURO bondholders including American banksters and € currency trash?
The individual European countries have now lost their independence and control of their own purse strings . Now any national budgets like that of Greece must be submitted to the Central Euro Authority banksters , the dictatorship of finance capital for ’approval” of Austerity levels to ensure they pay off their bond debts to capital.
If any of these countries default on their debts or the swapped currencies cannot hold it all together after this swap/marriage of the Euro and the US currencies the US will be left holding the baby.
P.S.
After the US States get bailed out by the Treasury and Fed they too will lose their budgetary independence like the European countries and will be forced to submit their state budgets’ to the central national authority of the Union to ensure proper subservient Austerity levels of tribute by the states to capital and the banksters in return for the “rescue”.
How goes the U.S. Union Then?
This comment has been removed by a blog administrator.
ReplyDeleteWhat is clear that posts are being made on sexual nonsense with sexual language used as offensively as possible in order to destroy the effect of any sensible comments or economics discussion on the articles posted.
ReplyDeleteThey are out to destroy this as a forum for discussing economic reality in order to keep people ignorant.
What PTB would desire that outcome?
No doubt these posters ,pretending to be inteligent , will claim their right to engage in this important type of cultured American free speech .
But they obviously have their weirdo head up their own ass/ vaginal cavity childish hang ups and may be just, paid for per piece posted ,trolls ?
So the Trilateral Commission in a classic slip of the tongue, by talking to a TC spy, tells us that Iran "has to go". Iran is getting in the way of their global government plan. They are also upset the sheeple are starting to wake up and figure out what's going on and for that the sheeple are starting to turn into wolves in sheep's clothing.
ReplyDeleteI'm about to become a '99er. I have had one job interview in the last 1.5 years of searching for work.
I am really happy to see the violence in the streets of Greece. This bailout crap is just that. California is officially doomed. Arnold is gonna cut off wealfare and other Social Services. Great going buddy, cut off help to those who need it the most. So folks, better keep a good supply of popcorn on hand. Greece is a comin' to California, sponsored by your friends at the Federal Reserve.
As Merv Griffin used to say "it's going to be a good show folks"
ReplyDeleteToo bad we can't turn back the clock to those days........
Instead we will all have a front row seat to the human theatre......right alongside the elite, only diff being we are the puppets and they pull the strings
2:21, I agree with you. I wonder why more desperate people haven't gone postal and shot some bankers or Wall Street CEOs? Since these fraudsters have not been charged with any crime, they feel free to continue to loot our economy. If they were afraid of punishment maybe things would stop.
ReplyDeleteAs for stocking up, I live in a rural area and already have most of what you need to survive if things fall apart. City folk don't. Nor will I buy gold and silver bars; they are too expensive and not useful. Just get your hands on older pieces of jewelry; they still have value as barter if all else fails.
Simply put, the US sheeple are too stupid to know who is screwing them over. The bankers had no worries, they have set up on their stooges to take the heat. Illegal Mexicans, stock brokers, police, military, etc. All the layers of stooges that the bankers line up to divert attention away from themselves.
ReplyDeleteGotta hand it to the Greeks. They figured it out and set bankers on fire.
Sadly, the Federal Reserve is their pride and joy, but sheeple America doesn't even see it. Instead of rallying against the Fed and killing it, the sheeple ramble on about all the minor distractions. Just as they are expected to do.